Why Gold Resource (GORO) Could Be Positioned for a Surge? - Tale of the Tape

By: Zacks.com

Posted: 6/6/2014 9:00:00 AM

Referenced Stocks: GORO

Gold Resource Corp
(
GORO
) is a basic materials company that could be an interesting play
for investors. That is because, not only does the stock have decent
short-term momentum, but it is seeing solid activity on the
earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts
are becoming more optimistic on GORO's earnings for the coming
quarter and year. In fact, consensus estimates have moved sharply
higher for both of these time frames over the past four weeks,
suggesting that Gold Resource could be a solid choice for
investors.

Current Quarter Estimates for GORO

In the past 30 days, 1 estimate moved up for Gold Resource but
there was no downward revision. The consensus estimate trend
has been pretty favourable, with estimates increasing from 5 cents
a share 30 days ago, to 15 cents today, a move of 200%.

Current Year Estimates for GORO

Meanwhile, Gold Resource's current year figures are also looking
quite promising, with 1 estimate moving higher in the past month,
compared to no downward revisions. The consensus estimate trend has
also seen a boost for this time frame, increasing from 35 cents per
share 30 days ago to 60 cents per share today, an increase of 71.4
%.

Bottom Line

The stock has also started to move higher lately, adding 9.7% over
the past four weeks, suggesting that investors are starting to take
note of this impressive story. So investors may definitely want to
consider this Zacks Rank #2 Gold Resource stock to profit in the
near future.